Correlation Between Chuangs China and TTM Technologies
Can any of the company-specific risk be diversified away by investing in both Chuangs China and TTM Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chuangs China and TTM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and TTM Technologies, you can compare the effects of market volatilities on Chuangs China and TTM Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chuangs China with a short position of TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and TTM Technologies.
Diversification Opportunities for Chuangs China and TTM Technologies
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuangs and TTM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies and Chuangs China is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chuangs China Investments are associated (or correlated) with TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of Chuangs China i.e., Chuangs China and TTM Technologies go up and down completely randomly.
Pair Corralation between Chuangs China and TTM Technologies
Assuming the 90 days horizon Chuangs China Investments is expected to under-perform the TTM Technologies. In addition to that, Chuangs China is 2.25 times more volatile than TTM Technologies. It trades about -0.01 of its total potential returns per unit of risk. TTM Technologies is currently generating about 0.05 per unit of volatility. If you would invest 1,390 in TTM Technologies on September 10, 2024 and sell it today you would earn a total of 910.00 from holding TTM Technologies or generate 65.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chuangs China Investments vs. TTM Technologies
Performance |
Timeline |
Chuangs China Investments |
TTM Technologies |
Chuangs China and TTM Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chuangs China and TTM Technologies
The main advantage of trading using opposite Chuangs China and TTM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, TTM Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TTM Technologies will offset losses from the drop in TTM Technologies' long position.Chuangs China vs. Longfor Group Holdings | Chuangs China vs. Mitsubishi Estate Co | Chuangs China vs. Hongkong Land Holdings | Chuangs China vs. Deutsche Wohnen SE |
TTM Technologies vs. Calibre Mining Corp | TTM Technologies vs. EAGLE MATERIALS | TTM Technologies vs. IMPERIAL TOBACCO | TTM Technologies vs. GALENA MINING LTD |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |